A research report indicates that listed insurance companies achieved better-than-expected growth in new business value (NBV) during H1 2025 despite high base comparisons. The bancassurance channel emerged strongly, contributing over 30% to NBV across listed insurers and becoming a new growth engine for life insurance liabilities, while individual agent transformation continued to deepen. On the asset side, investment assets of listed insurers grew steadily in H1 2025, with barbell allocation structures becoming more prominent. However, bond allocation increases were modest while equity allocation increases were more substantial. Additionally, interim cash dividend ratios of listed insurers generally improved in H1 2025.

Looking ahead to the second half, the insurance industry's liability side maintains strong momentum. As equity markets improve and provide catalysts, the insurance sector, leveraging its strong beta characteristics on the asset side, is expected to benefit further from rising market trends.

**Life Insurance Liability Growth Drives Strong NBV Performance, Property Insurance Underwriting Profitability Significantly Improves**

Listed insurance companies achieved better-than-expected NBV growth in H1 2025 despite high base comparisons. NBV growth rates were: New China Life Insurance +58.4% (non-restated basis compared to prior year) > Ping An Insurance +39.8% > China Pacific Insurance +32.3% > CHINA TAIPING +22.8% > China Life Insurance +20.3%.

The bancassurance channel emerged strongly, contributing over 30% to NBV across listed insurers and becoming a new growth engine for life insurance liabilities, while individual agent transformation continued to deepen. On the product side, companies significantly advanced dividend insurance transformation, with CHINA TAIPING's dividend insurance accounting for 91.3% of new single-premium long-term policies.

The "big three" property insurers showed differentiated original premium growth rates: Ping An Property Insurance +7.1% > PICC Property and Casualty +3.6% > China Pacific Property Insurance +0.9%, primarily due to significant differences in non-auto insurance business. Combined ratios (COR) improved substantially: PICC Property and Casualty 94.8% (down 1.4pt YoY) < Ping An Property Insurance 95.2% (down 2.6pt YoY) < China Pacific Property Insurance 96.3% (down 0.8pt YoY).

**Asset Performance Shows Clear Differentiation, Total Investment Yields Diverge**

Investment assets of listed insurers grew steadily in H1 2025, with barbell allocation structures becoming more prominent. However, bond allocation increases were modest while equity allocation increases were more substantial. As of end-June, equity allocation ratios were: New China Life Insurance 11.6% > Ping An Insurance 10.5% > China Pacific Insurance 9.7% > China Life Insurance 8.7% > CHINA TAIPING 8.3% > PICC 5.4%.

Regarding yield performance, net investment yields continued declining: PICC 3.7% (down 0.1pt YoY) > Ping An Insurance 3.6% (annualized, up 0.3pt YoY) > China Pacific Insurance 3.4% (annualized, down 0.2pt YoY) > New China Life Insurance 3.0% (down 0.2pt YoY) > China Life Insurance 2.8% (down 0.3pt YoY).

Total investment yields showed significant differences mainly due to different equity investment strategies: New China Life Insurance 5.9% (up 1.1pt YoY) > PICC 5.1% (up 1.0pt YoY) > China Pacific Insurance 4.6% (annualized, down 0.8pt YoY) > Ping An Insurance 3.8% (annualized, up 0.3pt YoY) > China Life Insurance 3.3% (down 0.3pt YoY).

**Net Profit and Net Assets Show Clear Differentiation, Interim Dividends Emphasize Shareholder Returns**

Due to different impacts from capital market volatility, H1 2025 attributable net profit growth rates for listed insurers were: New China Life Insurance +33.5% > PICC +16.9% > CHINA TAIPING +12.2% > China Pacific Insurance +11.0% > China Life Insurance +6.9%.

After excluding short-term investment volatility and other one-time significant impacts, operating profit growth rates for China Pacific Insurance and Ping An Insurance were +7.1% and +3.7% respectively, both showing steady performance.

As of end-June, attributable net asset growth rates were: PICC +6.1% > CHINA TAIPING +4.4% > China Life Insurance +2.7% > Ping An Insurance +1.7% > China Pacific Insurance -3.3% > New China Life Insurance -13.3%. The differentiation is likely related to different reserve discount rates and VFA model measurement bases.

Interim cash dividend ratios for listed insurers generally increased in H1 2025: Ping An Insurance 25.4% (up 2.7pt YoY) > China Life Insurance 16.4% (up 1.6pt YoY) > New China Life Insurance 14.1% (down 1.1pt YoY) > PICC 12.5% (up 0.2pt YoY).

**Investment Recommendations**

Looking ahead to the second half, the insurance industry's liability side maintains strong momentum. As equity markets improve and provide catalysts, the insurance sector, leveraging its strong beta characteristics on the asset side, is expected to benefit further from rising market trends.

The report maintains an industry recommendation rating, with individual stock recommendations for CHINA TAIPING (00966), China Pacific Insurance (601601.SH), and Ping An Insurance (601318.SH), while suggesting attention to New China Life Insurance (601336.SH), PICC (601319.SH), China Life Insurance (601628.SH), and emphasizing the long-term investment value of PICC Property and Casualty (02328).

**Risk Warnings**

Capital market volatility, interest rate declines, reduced product attractiveness, life insurance transformation below expectations, and tightened regulation.